TURKEY An old partner with new opportunities!

Vienna Economic Forum, 05th of November 2007, Vienna AUSTRIA

- Young Executives and Businessmen Association of TURKEY -

We know how to “survive”

MACROECONOMIC PARAMETERS

GROWTH 1990 1991 1992 1993 1994 2000 2001 2002 2003 2004 2005 2006 2007E

GNP (US$mn) 150.735 150.970 158,804 174,136 129,295 201,206 143,664 182,485 239,121 301,656 362,755 402,103 495,457GNP Growth (annual % chg.) 9,3 0,9 6.0 8.0 -5.5 6.5 -9.5 7.9 5.9 9.9 7.6 6.0 4.7

INFLATION 1990 1991 1992 1993 1994 2000 2001 2002 2003 2004 2005 2006 2007E

CPI (annual % chg.) 60,4 71,1 66.0 71.1 125.5 39.0 68.5 29.7 18.4 9.4 7.7 9.7 7.0CPI (12-month average annual % chg.) 60,3 66,0 70.1 66.1 106.3 54.9 54.4 45.0 25.3 8.6 8.2 9.6 8.5

Source: Turkstat, Eczacibasi Securites Research

Average growth rate of 7.2% since 2001

Inflation rate below 10% achieved in the last years

- Young Executives and Businessmen Association of TURKEY -

Growth

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2007E

GNP Growth (y/y)%

- Young Executives and Businessmen Association of TURKEY -

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FDI Inflows (left) FDI/GNP (right)

US$mn %

Economy- Balance of Payments

- Young Executives and Businessmen Association of TURKEY -

  Projections

  2007 2008

GDP (billion USD) 495.46 576.47

GDP growth (%) 4.7% 5.5%

CPI inflation (year end) 7.0% 6.5%

CA Deficit (% of GDP) -6.8% -6.7%

FDI (billion UDS) 20 16

Projections - Economy in TR!

- Young Executives and Businessmen Association of TURKEY -

FDI Flow – A hot topic for TR

A country;

– which is at the crossroads of energy lines

– with a young and trained population

– and increasing manufacturing capacity

offers solid opportunities for the investors!

- Young Executives and Businessmen Association of TURKEY -

FDI Flow

Substantial upward trend in the FDI Volume;

– Average annual rate of FDI inflow to TR was

1-2 billion US$ until year 2001

– 2005 FDI inflow to TR is 9,8 billion US$

– 2006 FDI inflow to TR is 20,2 billion US$

– Upward trend still continues...

- Young Executives and Businessmen Association of TURKEY -

FDI Flow - Some examples in last 3 years

Banking and Finance

• TEB - BNP Paribas (France) - 217 Million USD

• Dışbank - Fortis (Belgium) - 1.16 Billion USD

• Yapı Kredi - Koç Holding + Unicredito (Italy) - 1.5 Billion USD

• Akbank – Citi Group (US) - 3.1 Billion USD

• Garanti Bank – GE Capital (US) – 2.8 Billion USD

• Finansbank – National Bank of Greece - 2.8 Billion USD

• General Insurance – Mapfre (Spain) - 375 Million USD

- Young Executives and Businessmen Association of TURKEY -

Other Sectors

• Akmerkez Shop. Mall – Corio (Netherlands) - 190 Million USD

• Kent Food – Cadbury Schweppes (UK) - 96 Million USD

• Petrol Ofisi – OMV (Austria) - 1 Billion USD

• Mey Alcoholic Beverages – TPG (US) - 810 Million USD

• Cevahir Mall – St.Martins (Kuwait) - 750 Million USD

• Eczacıbaşı Pharma - Zentiva (Czech) - 612 Million USD

• Enerjisa – Verbund (Austria) - 326 Million USD

FDI Flow - Some examples in last 3 years

- Young Executives and Businessmen Association of TURKEY -

FDI Flow - Sectors

At the moment FDI mainly goes to;

– Banking and Finance

– Energy

– Transportation

– Real Estate and Land Development

- Young Executives and Businessmen Association of TURKEY -

FDI Flow – Potential Sectors

Very good opportunities in areas like;

– Energy

– Tourism

– Media

– Consumer Products

– Retailing

- Young Executives and Businessmen Association of TURKEY -

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1998 1999 2000 2001 2002 2003 2004 2005 2006 2007E

US$bn

Net Tourism Revenues

Tourism Figures

- Young Executives and Businessmen Association of TURKEY -

A few words over ISE

• Established in 1986, a relatively young stock market

• Over the past 19 years:

number of the ISE-listed companies rose from 80 to 326, ISE-100 Mcap from US$1bn to US$141bn

• Around 66% of the IPOs are allocated to foreign institutional investors

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01836547290108126144162180198216234252270288

Mcap ($bn) (right) Number of firms (left)

Mcap of the ISE & the number of listed companies

Source: ISE

(US$bn)

- Young Executives and Businessmen Association of TURKEY -

Sectoral Breakdown of Free-Float

• A wide range of companies and sectors, with banks and conglomerates having the largest pie in the free-float Mcap

• A large number of companies having JVs with foreign partners, such as:

Ford Motor – Otosan Fiat Auto – TofasPhillip Morris – Carrefour – Mitsubishi – Sabanci HoldingUniCredito Italiano – Koc HoldingAOL Time Warner – Dogan Media Group

Source: ISE

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45.00%

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518 16

3

223

Number of the ISE-listed companies

- Young Executives and Businessmen Association of TURKEY -

Foreign Holdings - ISE

• During the past 10 years, the share of foreign holdings in the free - float Mcap of the ISE always remained above 30%

• Foreign interest in the ISE in 2007 is still on an up-trend

• ISE is one of the most attractive SEs of the world with lucratively high earnings!

5%

15%

25%

35%

45%

55%

65%

75%

85%

1990

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05,00010,00015,00020,00025,00030,00035,00040,00045,00050,00055,00060,00065,00070,000

F. Holdings ($mn) (right) % share in free-float (left)

(US$mn)

Source: ISE

Thank you for your kind attention.

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